But, let’s set the record straight: Gig workers, for the most part, are not employees. They are entrepreneurial businessmen and women.

Here’s why it’s important for gig workers to make the distinction known.

Employee or Contractor: What’s the Difference?

The United States notes distinct differences between employees and independent contractors. Much of these differences are in place to help employers understand the tax implications of contracting a gig worker versus hiring someone as an employee.

According to the Internal Revenue Service (IRS), three main categories of rules apply when making the distinction: financial, behavioral, and type of relationship.

If an individual, for example, gets reimbursed for expenses by the payer, is controlled by the payer as to how, or when, he works, or provides long-term work and has paid benefits, that individual is considered an employee.

As a general rule, an independent contractor then has control over his or her hours and how the work is performed, has no benefits from the payer, and does not have an ongoing business relationship with the payer.

Unfortunately, these distinctions become very muddled in the case of gig workers, who often do perform long-term work for others or fall into some other “employee” designation, but not all of them.

Why are Gig Workers Fighting the “Employee” Label?

A ruling in 2015 decided that Uber drivers were, in fact, employees. In 2016, a different ruling was made concerning Lyft drivers, stating that they should be considered independent contractors.

Confused yet?

Courts have argued that Uber spells out certain control methods over its rideshare drivers, such as a customer feedback system and a mandatory 10-minute waiting time if a rider doesn’t show up in time. These “controls” may cross the line, courts say, from a contractor to employee position.

All the while, many gig workers have fought for the status of independent contractors rather than employee, even though an employee status could give them more stability and benefits. So why are gig workers fighting the title?

One of the biggest perks of being a gig worker is the flexibility it allows an individual. 73% of workers prefer flexibility over a traditional 9 to 5 job, even if benefits are provided from steady employment.

Over half of Lyft drivers also drive with another company because it gives them more money-making opportunities to fill in their schedules as they wish.

Worker or Contractor? Neither! Gig Workers are Entrepreneurs

In addition to better flexibility from independent contract work, the fact that gig workers are technically entrepreneurs is incredibly appealing to them.

Even the IRS defines an independent contractor as someone who is “self-employed.” In other words, the independent contractor is, in fact, an entrepreneur who creates business for her or himself.

An independent contractor is responsible for his or her business expenses and taxes, including self-employment tax that covers Social Security and Medicare taxes, just as one would if she had her own business.

Entrepreneurs are responsible for anything having to do with their business. This includes the risks, rewards, finances, failures, and schedules, to name only a few. And there's something very liberating about that kind of control over your own financial destiny.

So carefully consider jumping to conclusions believing that gig workers all want to be employees. For the most part, this isn't the case. They are entrepreneurs.

When an individual chooses the gig worker life, they are essentially taking part in a growing economy of workers searching for employment freedom and effectively creating an entrepreneurial role for themselves.

By Robin Smith, CEO and Co-founder WeGoLook

#ImALooker

Want to Learn More about Insurtech and Fintech plus the future of Insurance, Banking and Finance?

In 2016, global insurtech investments totaled $1.7 billion, with both the volume and value of deals roughly doubling since 2014. This doesn’t include companies that are self-funded, have traditional financing, or work with angel investors to bring innovation to the $4.5 trillion global insurance industry. And, every segment of the insurance value chain has been impacted by those investments, including claims.

We are excited to announce our partnership with the CCC ONE platform to help insurance policyholders file self-service claims remotely. CCC ONE is a cloud platform developed by CCC Information Services, Inc. (CCC), a leading software as a service provider to the automotive, insurance, and collision repair industries. Founded in 1980, CCC leverages the CCC ONE platform to link a vast network of more than 350 insurance carriers, more than 24,000 repair facilities, hundreds of part suppliers, dozens of third-party data and service providers, and car manufacturers.

Through this partnership, CCC’s customers can electronically connect to our on-demand field force of more than 40,000 well-trained Lookers who are available 24 hours a day, 7 days a week. Our Lookers are always standing by to help insurers provide a high-level of service at a critical point in the claims process. When assigned, one of our Lookers will gather imagery and information in the field, in any U.S. location—even rural areas—in as little as one day.

How it works

When a claim qualifies for CCC’s mobile channel, policyholders are instructed by their insurer how to capture and upload photos of the damage via their smart device. However, when the policyholder requests assistance, or they do not complete the process within the insurer-defined period, insurers can send us an electronic notification through CCC ONE.

As soon as we receive the request for assistance, we dispatch a nearby Looker to take and upload photos to CCC ONE. Once the photos are uploaded, they are immediately available for insurance appraisers to initiate the claims or repair process.

Additionally, any of CCC’s customers can directly assign claims to WeGoLook through CCC ONE. Once assigned, we immediately dispatch Lookers to capture and upload photos and other requested information from the site of the claim.

It’s a win, win, win

We’re very excited about this partnership the many ways it allows WeGoLook to offer value to policyholders and insurers alike. With CCC and WeGoLook, policyholders gain an even more seamless experience when filing self-service claims. Insurers get access to our on-demand workforce through the CCC platform to help them provide even better service to their insurance industry clients.

And for us, this partnership furthers our mission, and the mission of our parent company, Crawford & Company, to help restore and enhance lives, businesses, and communities.